"I'd
rather go to bed without supper than rise in debt."
Ben Franklin
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Franklin Debt Relief, LLC is a member of (TASC) The Association of Settlement Companies. This trade association has developed a standardized industry disclosure for consumers.
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Repo Debt Settlement Call Today: (877) 274-1260 |
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Repossession Process & Debt Settlement
The purpose of this article is go into detail about the car or auto repossession process and how you can satisfy any subsequent deficiency balances through debt settlement, also known as debt reduction or negotiation. Debt settlement involves satisfying the balance for less than full amount, sometimes for as little as 55 percent of what is owed, and it is the fastest way to reduce debt and avoid bankruptcy. Avoiding a Repossession If you are in jeopardy of falling behind on your car payment, contact your creditor and ask what you can do. Many times they will be flexible with you and try to work out arrangements to avoid the need for a repo. Any changes to the original contract should be in writing so as to avoid any problems in the future. If the creditor refuses to work with you and defaulting is inevitable, consider voluntarily turning the car back in. A voluntary repossession may help reduce any costs associated with the repo, your credit, and your ability to buy the car back if you intend to do so.Confiscating the Car In most states, a creditor can seize your vehicle without a court order once you have defaulted on your loan or lease. What constitutes a default is normally missing as little as one payment, but this varies from state to state, so you’re best off reading the original contract. The repo man is allowed to confiscate the car without giving you advance notice in some states, but most states prohibit any “breach of the peace” in connection with the repossession. If there is a “breach of the peace” in connection with a repo, the consumer may be entitled to the car, as well as compensation for any damages. Follow this link to learn more about what constitutes a “breach of the peace” in a repo.They Repossessed the Car----Now What Once the creditor has repossessed the vehicle, they normally sell it or auction it to recover their losses. In some states, the creditor is required to inform you of what will happen to the car, and if it is being sold publicly, where and when this will happen so you can participate in the auction. In other states you are allowed to get the car back through reinstatement---paying back any missed payments plus late fees and resuming payments according to the original terms. If the car is sold, it must be done in “commercially reasonable manner.” In other words, the car must be sold at or near its fair market price. If your car isn’t sold in a “commercially reasonable manner” you can use it as a claim against your creditor for damages and/or as a defense in the event that they sue you for the deficiency balance.Using Debt Settlement for the Deficiency Balance Normally once the car is sold you will owe what’s called a deficiency balance. A deficiency balance is the difference between what you owed on the loan or lease and what the car was sold for. For example, let’s say you owed $3000 on your vehicle, it was repossessed, and auctioned for $1000. The deficiency balance is $2000---the difference between what is owed ($3000) and what is was auctioned for ($1000). To satisfy the deficiency balance many consumers opt for debt settlement, the service offered by Franklin Debt Relief. Through settlement, a consumer can reduce the balance owed by as much as 45 percent, which includes the fees paid to Franklin Debt Relief. Settlement is the fastest way to reduce debt and avoid bankruptcy from a deficiency balance.If you are interested in using debt reduction for your deficiency balance, please feel free to call (877) 274-1260 or fill out a form and we’ll contact you as soon as possible. |
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